Union Cabinet Restructures PM SVANidhi Scheme, Extends Till 2030

The Union Cabinet has approved a major restructuring of the PM SVANidhi (Prime Minister Street Vendor’s Atma Nirbhar Nidhi) Scheme, extending its lending timeline till March 31, 2030, and enhancing financial and digital access for over 1.15 crore street vendors, including 50 lakh new beneficiaries. The revamped scheme, launched originally in June 2020 during the pandemic, is aimed at strengthening urban livelihoods and promoting digital inclusion.

Key Changes in the Restructured PM SVANidhi Scheme

Extended Lending Period and Total Outlay

The government has extended the scheme’s lending period beyond the earlier deadline of December 31, 2024, to March 31, 2030, with a total financial outlay of ₹7,332 crore. This long-term extension aligns with India’s broader goals of financial inclusion and urban economic empowerment.

Enhanced Loan Amounts

The revised scheme includes increased loan amounts for the first two tranches,

• First Tranche Loan: Increased from ₹10,000 to ₹15,000
• Second Tranche Loan: Increased from ₹20,000 to ₹25,000
• Third Tranche Loan: Remains at ₹50,000

This enhancement aims to provide greater working capital support and help vendors scale up their businesses sustainably.

New Features to Boost Digital Financial Inclusion

UPI-linked RuPay Credit Cards

A major addition to the scheme is the provision of RuPay Credit Cards linked to UPI for vendors who have successfully repaid the second loan tranche. This enables,

• Instant credit access for business and personal needs
• Increased digital footprint among informal vendors
• Integration with India’s growing digital payment ecosystem

Cashback Incentives

To further incentivize digital transactions, street vendors can now earn cashback up to ₹1,600 annually on their retail and wholesale transactions. This not only encourages digital payments but also builds transactional credit history.

Wider Coverage and Targeted Reach

Expanded Geographical Scope

The restructured PM SVANidhi Scheme will now extend coverage,

• Beyond statutory towns
• To census towns and peri-urban areas
• In a phased, graded approach

This expansion ensures that a larger population of street vendors in semi-urban and rural outskirts can also benefit from formal credit access and inclusion.

Beneficiary Target

The government expects to support 1.15 crore total beneficiaries, which includes,

• 68 lakh existing street vendors
• 50 lakh new entrants, bringing fresh inclusion into the scheme

Scheme Impact Since Launch

Since its inception in June 2020, the PM SVANidhi Scheme has delivered,

• Over 96 lakh loans disbursed
• ₹13,797 crore in credit distributed
• Financial support to 68 lakh+ vendors
• Crucial livelihood revival during and post-COVID

The restructuring is expected to build on this momentum, making credit more accessible and pushing vendors towards economic stability and growth.